Gaithersburg posts clean FY25 audit; general fund posts unexpected increase
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Summary
City auditors issued an unmodified (clean) opinion on Gaithersburg's FY25 financial statements; staff reported a roughly $8 million increase in general fund balance driven by revenue outperformance and expense savings.
City finance staff and the city's external auditors presented the FY25 annual comprehensive financial report to the Mayor and Council on Jan. 5. Janice Hartman, Director of Finance Administration, said the city's general fund increased by approximately $8 million compared with a budgeted $5.7 million decrease; the improvement was driven by revenue overages (approximately $9.4 million total) and expense savings (about $4.2 million). Hartman listed notable revenue gains including $4.7 million in investment earnings, $1.4 million in intergovernmental revenue, $1.2 million in property tax revenue and $1 million in licenses and permits for a large building permit issued in FY25.
Chris Lehman of SB & Company, the city's external audit engagement partner, presented the required audit communications and said the firm issued an unmodified opinion on the city's June 30, 2025 financial statements, identified no material weaknesses and proposed no audit adjustments. Lehman noted that the city will not be required to have a single audit for FY25 (federal-expenditures threshold not met) and praised the finance team's work in preparing materials and meeting the state deadline.
City leaders thanked the finance department for sustained excellence in reporting and noted the city will submit FY25 materials for national award consideration.